IRS Moves Away from Paper Checks: Frequently Asked Questions
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or view the resources at the bottom of this post to see how this information may apply to you.
Starting September 30, 2025, the IRS is moving away from paper checks. That means refunds and tax payments will now be handled electronically. If you haven’t set up an electronic payment method yet, now’s the time to make the switch.
In addition to refund checks, other Federal government payments, such as Social Security and Veteran benefits, are moving to electronic payments.
What options are available for refunds?
If you typically receive your refund by paper check, you will need to switch to one of the following methods when you file your tax return:
Direct Deposit: Get your refund sent straight to your bank account. It’s also the fastest and most secure option.
Treasury-sponsored Debit Card: If you don’t have a bank account, you can receive your refund on a prepaid debit card issued by the U.S. Treasury.
What options are available for making tax payments?
Mailing paper checks to the IRS will no longer be an option for making tax payments. Instead, you can pay electronically using one of the following methods:
Direct Debit: Authorize the IRS to withdraw your payment directly from your bank account when using tax preparation software or filing with a tax professional.
IRS Direct Pay: Make a one-time payment on the IRS website directly from your bank account.
Debit or Credit Card: Pay electronically using a credit or debit card through a third-party processor. However, processing fees apply.
Digital Wallet: Approved third-party processors also accept payments through digital wallet apps such as PayPal and Venmo.
Important reminder: Watch out for IRS-related scams! Although electronic payments are becoming the standard, the IRS will never require you to pay using one specific method.
Are there any exceptions?
While the IRS and U.S. Treasury strongly encourage electronic payments, there are a few limited exceptions where paper checks may still be issued. This includes:
Individuals who do not have access to banking or electronic payment services
Emergency payments that would cause hardship
National security or law enforcement-related payments
For most taxpayers, an electronic payment method will be required.
What do I need to do?
Depending on your situation, here are the next steps:
If you already receive your refund electronically and/or make electronic payments, no action is necessary.
If you have a bank account, choose direct deposit or direct debit when filing your taxes or making payments.
If you don’t have a bank account, you’ll need to open one to receive direct deposit and/or set up electronic payments. Some prepaid debit cards and mobile apps that provide a routing and account number may also be able to accept your tax refund.
For those who don’t have access or are unable to sign up for a bank account, the IRS will issue a Treasury-sponsored prepaid debit card.
Need help filing?
When you file with Northside Tax Service, we can help you set up direct deposit and/or direct debit so your refunds and payments are simple and stress-free. Give us a call at (360) 922-0235 to learn more about our services!